The Future of Branding

Branding is becoming ever more important as companies face an increasingly global and competitive marketplace. But what should companies be focusing on when managing this key intangible asset? This report provides in-depth analysis of the key challenges of branding and how companies can respond effectively.

Report Highlights

There are two important insights into managing brand through mergers and acquisitions successfully. Firstly, serious problems can be created by not actively managing the brand through such developments, which can cause brand equity to suffer. Secondly, ongoing communication to all parts of the value chain is essential.

For intermediaries, the quality and range of products is far more important than brand when assessing providers. Nevertheless, providers should look to appeal to both intermediaries and end customers, by looking to offer a high level of service and wide product portfolio, as well as build up a reputation for trust, leadership and social values.
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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
OVERVIEW ANALYSIS 4
Branding is becoming increasingly important 4
There are five key challenges of fundamental importance to all 4
Success will depend upon a number of factors 5
CONSUMER BRANDS MUST REFLECT PEOPLE’S LIFESTYLES AND ASPIRATIONS 7
Brands have important symbolic meanings that can be used to build brand equity 7
Engendering trust should be a primary focus of branding efforts 11
Future brand strategies must alleviate growing consumer skepticism 13
CORPORATE BRANDS MUST DELIVER ON THEIR PROMISE TO ACT RESPONSIBLY 17
Corporate branding is ideal in commoditized markets 17
Commodity companies cannot hide wholesale activities from their corporate profile 20
Investment in the corporate brand has to focus internally as well as externally 22
The corporate profile can be easily damaged by activities that do not fit with it 23
BRANDS MUST APPEAL TO BOTH INTERMEDIARIES AND END CUSTOMERS 24
The Financial Services market illustrates the challenge of brand in a complex market 24
Brand is important to a high proportion of the target clients of intermediaries 25
Providers should focus branding efforts on both end customers and intermediaries 26
Intermediaries are skeptical of brand promotion without substance 28
Strong brands rely on a combination of values appealing to intermediaries and their clients 29
ACTIVE BRAND MANAGEMENT IS ESSENTIAL TO MERGERS AND ACQUISITIONS 31
Companies must manage their brands to maximise their chances of success 31
For many companies, the policy of ‘accumulate and assimilate’ has worked well 32
DHL/Airborne case shows that detailed planning is key 34
DHL re-branding shows that communication is key 36
While brand management can yield problems, there are five steps to maximize the benefits 39
BRAND MANAGERS MUST OPTIMIZE ROI IN A MARKET WITH DECLINING RETURNS 40
Pharmaceutical branding has traditionally led to considerable returns 40
ROI has been declining as new advertising regulations and media have been created 42
Cost constraints will further reduce ROI 43
The future of pharmaceutical branding is uncertain 46
APPENDIX 48
Definitions 48
Further reading 48
Ask the analyst 48
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